Brazil’s central bank has rejected the new WhatsApp payment and has ordered Visa and MasterCard to suspend any further plans to link to WhatsApp Pay till a prior authorization is giving
Last week WhatsApp the Facebook-owned instant messaging app announced that it will be launching its WhatsApp payments service popularly known as WhatsApp payment in brazil. The payment platform was under a beta state in India for a couple of months now but was not launched by WhatsApp due to a reason the clearly explained here.
Whatsapp Pay Suspensions Reason
But Brazil’s Central Bank has rejected the payment platform giving a reason that the need to make sure that an appropriate competitive environment is maintained and payment system maintains interoperable, fast, transparent, inexpensive, and also secure.
While suspending the new payment platform in brazil, Brazil Central bank said that the new service will allow the central bank have access and check the risk involve to the proper functioning of Brazillian payment system, also to verify the competence of the payment platform and compliance with the existing principles and rules.
The Brazilians (CADE)Administrative Council for Economic Defense also took precaution measures to suspend partnership between CIELO and Facebook to enable payment over the payment platform. The service would be offering accredited merchants in Brazil and also options of receiving payment via the new Whatsapp Pay Platform.
Cade also analyses the platform and reported that there are potential risks to competition as CIELO has high participation in Brazil which can guarantee a significant market power.
Whatsapp Pay Suspension In Brazil Conclusions
The Brazillian Central Bank has taken a great step to make sure that the payment platform will be very secure to the citizens, I believe the reason of suspension is understandable and we hope the suspension will be lifted soon.